VF Corporation's (NYSE: VFC) innovative Retail Floor Space Management (RFSM) initiative is producing excellent sales and margin improvements for its Lee jeans brand at JCPenney stores nationwide, the company said.

Since the May 1 chainwide launch of RFSM in womens jeans and casual pants, Lee has generated double digit sales increases across misses, women's, and petites while reducing inventory by 14 per cent compared to a year ago. Gross margins are also up two percentage points.

Committed to being the most consumer-responsive apparel company in the world, VF has taken Vendor Managed Inventory (VMI) to a new level with the RFSM system, going far beyond traditional flow replenishment for highly effective inventory management and maximisation of sales.

Utilising Arthur sales planning tools and VF's proprietary micromarketing and dynamic modeling programs, Lee is able to establish volume groups, analysing climatic and demographic zones and historical sales patterns to build product assortments appropriate to individual stores. Sales reports and orders are generated semi-weekly, further reducing cycle time.

Lee, currently the number one female jeans brand at JCPenney, co-manages RFSM with the retailer on a daily basis. "RFSM has enabled our stores to provide excellent customer service in Lee product, and we are very pleased with the increase in profitable sales," said Vanessa Castagna, executive vice president and chief operating officer of JCPenney Stores Merchandising and Catalog. "We are committed to ensuring that our customers find their correct sizes and colours in the styles they want every time they visit a JCPenney store, place an order through our catalogue or visit the website."

Joe Ablan, vice president of sales for Lee, commented: "By using VF technology and resources, buyers are able to focus on their customers and sell-through rather than placing a 'buy' or approving a replenishment order. VF ensures that the assortment is right from the start. Both Lee and JCPenney are benefitting from better inventory management by combining each other's resources to maximize sales and meet consumer demand."

About VF Corporation VF Corporation is the world's largest apparel company and a leader in jeanswear, intimate apparel, knitwear, workwear, playwear, daypacks and swimwear. Its principal brands include Lee, Wrangler, Riders, Rustler, CHIC, Gitano, Vanity Fair, and The North Face. For more information visit the company's home page at www.vfc.com.